ATI sets sights on foreign markets

Al Tamimi Investments (ATI), channelling its private capital for social benefit is reaping more than financial returns for its businesses. In recent years, the group has been favouring ventures, which support the local community, and now it intends to apply its impact investing approach to foreign markets. Today, Al Tamimi Investments subsidiaries represent a broad range of sectors including real estate, early education, facilities management, healthcare, hospitality, retail, and consulting. Collectively its companies generate over 1,200 jobs within the UAE and contribute in excess of Dhs50 million to the local economy each year. However, at their core, ATI subsidiaries are anchored by missions to improve the communities in which they operate. ATI was founded in 2006 by Emirati business leader Essam Al Tamimi and Rachael Wunsch, an accomplished venture capitalist from Australia. Using personal capital gained from the success of his law firm Al Tamimi & Company, ATI sought to invest in businesses that would enrich and bring value to the UAE community. Although ATI did not realise it at the time, the company had adopted what the global markets now refer to as impact investing, making investments with the aim to solve social or environmental challenges while generating financial profit. JPMorgan predicts that by 2020 there could be between $400 billion and $1 trillion invested this way. Attention Meanwhile the equity markets in GCC had witnessed almost the same level of attention in first half of 2012, compared to the previous half, said Kuwait Financial Centre ‘Markaz’ in its recent report, titled ‘GCC Research Statistics’. A total of 19 brokers published 218 research notes on 89 companies during the half, compared to 208 research notes published in H2 of 2011. The report noted that during the first half of 2012, 13 per cent of all GCC companies received research coverage, representing 69 per cent of the total market cap. Saudi Arabia, which continued to attract the most attention, accounted for 44 per cent of research notes, followed by the UAE with 18 per cent. According to Markaz’s report UAE, after Bahrain, was the most preferred equity market in 1H12, with 80 per cent of the reports receiving ‘Buy’ ratings. On the flip side, Kuwait had a majority of ‘Hold’ calls, at 47 per cent. In terms of top researched stocks, Qatar Telecom and Almarai topped the list with 9 research notes followed by Savola Group Company and Eithad Etisalat. The latter and Riyad Bank feature among stocks with the highest upside potential going forward, as per broker recommendations. As for market capitalisation coverage, Qatar has the highest coverage in the first half of 2012 (86 per cent) followed by Saudi Arabia and Oman with 79 per cent and 73 per cent market cap coverage, respectively. On a quarterly basis also, Qatar leads in terms of market cap coverage with 84 per cent in the 1st and 2nd Quarters. Markaz report indicates that Qatar was the most researched country in terms of percentage of companies covered to total companies listed in the country. About 27 per cent of all listed companies in Qatar, accounting for 86 per cent of the local market capitalisation, received coverage in first half of 2012. Top sectors Banking continues to be the most researched sector with 65 notes; 52 of these 65 were ‘Buy’ calls, 12 were ‘Hold’ calls, while the remaining were ‘Sell’. After Banking, Telecommunications sector was the most researched sector, with 32 ‘Buy’ recommendations and 2 “Sell” calls. The Industrial Services sector received only 3 “Sell” recommendations. Kuwait Financial Centre ‘Markaz’, with total assets under management of over KD 888 million as of March 31, 2012, was established in 1974 has become one of the leading asset management and investment banking institutions in the Arabian Gulf Region.